Cain Withdraws from Consideration for Seat on Federal Reserve
Former Godfather’s Pizza CEO Herman Cain has withdrawn from consideration for a seaton the Federal Reserve board amid focus on past allegations of sexual harassment and infidelity.
Cain ran for president as an insurgent populist eyeing the 2012 Republican presidential nomination, but dropped out of that race in December 2011 after three women accused him of sexual improprieties during his tenure, a decade earlier, as head of the National Restaurant Association, and a fourth woman came forward claiming to be his longtime mistress.
He initially dismissed the claims as baseless, but then abruptly announced that he was suspending his presidential campaign “because of the continued distraction, the continued hurt … on me, on my family.”
Those scandals resurfaced earlier this month, after President Donald Trump said he intended to nominate Cain and conservative ally Stephen Moore to fill vacancies on the Federal Reserve’s seven-member board of governors.
The nominations immediately raised concerns about the central bank’s ability to remain politically independent. This was particularly true in the case of Cain’s nomination. In late 2018, he co-founded a pro-Trump political action committee, America Fighting Back PAC.
His nomination was all but doomed earlier this month when four Republican senators said they wouldn’t vote to confirm him if he were nominated. The GOP holds just a three-seat majority in the Senate.
Despite all this, Cain said just days ago on Fox Business Network that there was no way he was going to withdraw, adding that the four Republican senators who had expressed reservations about him “have never met me.”
Even then, however, his support at the White House seemed to be softening. Speaking with reporters last week, Trump’s top economic adviser Lawrence Kudlow said, “it will probably be up to Herman Cain if he wants to stay in that process or not.”
On Monday, President Trump tweeted “My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board. I will respect his wishes. Herman is a great American who truly loves our Country!”
Since last fall, Trump has repeatedly criticized Jerome Powell, his pick for Fed chairman, and other Fed officials for raising interest rates four times last year.
In The News
WASHINGTON — The Federal Reserve on Wednesday cut interest rates for the first time since the Great Recession in 2008, a risky move that clashes with its historical practice of taking such a step only when the economy is in real trouble. The small, quarter-point reduction... Read More
WASHINGTON — A week after President Donald Trump tweeted his intention to nominate Judy Shelton and Christopher Waller to the Federal Reserve Board, GOP senators are expressing cautious optimism about both picks, despite Shelton’s unorthodox views on monetary policy. They’re at least better than the president’s... Read More
President Donald Trump said Tuesday he’s planning to nominate Christopher Waller and Judy Shelton to serve on the Federal Reserve Board. Waller, who is an executive vice president and the director of research at the St. Louis Federal Reserve Bank, previously served as a professor of... Read More
WASHINGTON — The Federal Reserve, facing heavy pressure from President Trump to lower borrowing costs, left interest rates unchanged Wednesday but made clear that it was leaning toward cutting rates because of rising risks from trade tensions and a softer global economy. Wrapping up a two-day... Read More
Federal Reserve Chairman Jerome Powell hinted on Tuesday that the central bank is prepared to cut interest rates later this year if it decides President Donald Trump's many trade conflicts are harming the U.S. economy. "We are closely monitoring the implications of these developments for the... Read More
WASHINGTON — President Donald Trump was dealt another setback in his bid to put a political ally on the Federal Reserve Board as plans to appoint Stephen Moore, a conservative commentator and economist, collapsed amid a backlash sparked by Moore’s past writings and statements that disparaged... Read More